Asian monies tumble late, rupiah casts pall over region<\/p>\n
SINGAPORE (Dow Jones): The foundering Indonesian rupiah Monday
\ncast a pall over regional Asian currencies already under pressure
\nfrom what analysts say is an impending hike in U.S. interest
\nrates later this week.<\/p>\n
The rupiah has taken a pummeling in recent weeks amid growing
\ninvestor skepticism about the Indonesian government's ability to
\npush ahead with reforms and keep the economic recovery on track.<\/p>\n
President Abdurrahman Wahid said Monday he had no plan of
\naction to keep the currency from falling further, but added he
\nwould be discussing the situation with his economic ministers in
\nthe coming days if the weakness persists.<\/p>\n
An outbreak of rioting in the streets of Jakarta's Chinatown
\nover the weekend provided the latest impetus for market players
\nto dump the rupiah.<\/p>\n
Late Monday, the dollar was quoted at Rp 8,541, up from Rp
\n8,485 late Friday.<\/p>\n
The currency had been pushed to seven-month low of Rp 8,768 to
\na dollar at one point last Friday following a confusing barrage
\nof comments by Indonesian policy makers. Wahid helped the
\ncurrency rebound at the day's end by saying the government was
\nprepared to act if the currency remained weak.<\/p>\n
That sparked speculation that he was prepared to impose some
\ntype of capital controls, but on Monday he said his comments were
\nmisinterpreted.<\/p>\n
The Singapore dollar couldn't escape the gravitational pull of
\nthe falling rupiah.<\/p>\n
Late in Asia the U.S. dollar was quoted at S$1.7296, up from
\nS$1.7243 late Friday.<\/p>\n
Although the Singapore dollar mimicked the rupiah, its swings
\nwere far more moderate, and its losses were capped by
\nexpectations that the Monetary Authority of Singapore would
\nintervene above the level of S$1.7300.<\/p>\n
Some analysts said there was a chance that the Singapore
\ndollar and rupiah could get a boost if investors move to
\nliquidate their long U.S. dollar positions ahead of Tuesday's
\nFederal Open Market Committee meeting in the U.S.<\/p>\n
Market players have been snapping up U.S. dollars on
\nexpectations that the FOMC will raise short-term rates by a half
\npercentage point, and that it likely will continue raising rates
\nlater in the year.<\/p>\n
The Philippine peso also suffered under the weight of the
\nexpected narrowing of interest rate differentials with the U.S.<\/p>\n
Profit-taking by banks long on dollars capped the U.S.
\ncurrency's gains, however, dealers said.<\/p>\n
The dollar closed at 41.560 pesos on the Philippine Dealing
\nSystem, up from Friday's close at 41.500 pesos.<\/p>\n
Concerns over the conflict in southern Mindanao between Muslim
\nrebels and government troops, as well as questions on the
\nstability of the banking industry, have been brushed aside for
\nthe time being, traders said.<\/p>\n
The South Korean won slipped to its lowest closing level
\nagainst the U.S. dollar in nearly eight weeks on dollar buying by
\noverseas players in the non-deliverable forward market.<\/p>\n
The dollar closed at 1,114.70 won, up from 1,114.50 won on
\nFriday. It was the highest close for the U.S. dollar since March
\n21 when it reached 1,116.40 won.<\/p>\n
The New Taiwan dollar ended weaker on concerns over relations
\nwith China and the ailing stock markets in Taiwan.<\/p>\n
The U.S. dollar closed at NT$30.767, up from NT$30.735 Friday.
\nTrading was light as many market participants were sidelined,
\nawaiting President-elect Chen Shui-bian's inauguration speech
\nSaturday, hoping for clues on future relations with China,
\ndealers said.<\/p>\n
Rupiah weakness weighed on the Thai baht, which breached the a
\nkey support level of 39.200 to a dollar. Lack of liquidity in the
\nrupiah forced some dealers to sell the baht in a proxy move.<\/p>\n
In late trading the dollar was quoted at 39.250 baht, up from
\n38.845 baht late Friday.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-monies-tumble-late-rupiah-casts-pall-over-region-1447893297",
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